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Trends and innovations in mobile banking

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The development of the internet and mobile technologies has influenced the transformation of many industrial branches, including particular economies. The increasing use of mobile phones and the use of the internet has changed many industries, including banking. Online banking, which is easily done from home or from the office through a personal computer, has fought for its place in comparison to traditional bank transfers. Information on the status of a bank account or payment transaction in a short time via mobile phones is merged as "mobile banking". Mobile banking has advanced to today's payment with the help of mobile phones anywhere and anytime, and mobile phone manufacturers have had to meet the growing needs of users for simpler and easier banking transactions. A revolutionary step forward in this area was the production of smart phones, which made contactless payments. The development of mobile technologies has thus affected changes in banking operations, with the main goal of providing new distribution channels for banking services. All this led to intensive cooperation between mobile operators and banks. The lower costs of mobile banking, as well as more accessible services in time and place of banking transactions, have contributed to the number of users of mobile banking services constantly increasing in the world, but also in Serbia.
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Trends and innovations in mobile banking
Vedran Tomić
1
Research Associate, Institute for Science Application in Agriculture, Belgrade
Danijela Stojanović
2
Research Associate, Institute of Economic Sciences, Belgrade
ABSTRACT
The development of the internet and mobile technologies has influenced the
transformation of many industrial branches, including particular economies. The
increasing use of mobile phones and the use of the internet has changed many industries,
including banking. Online banking, which is easily done from home or from the office
through a personal computer, has fought for its place in comparison to traditional bank
transfers. Information on the status of a bank account or payment transaction in a short
time via mobile phones is merged as "mobile banking". Mobile banking has advanced
to today's payment with the help of mobile phones anywhere and anytime, and mobile
phone manufacturers have had to meet the growing needs of users for simpler and easier
banking transactions. A revolutionary step forward in this area was the production of
smart phones, which made contactless payments. The development of mobile
technologies has thus affected changes in banking operations, with the main goal of
providing new distribution channels for banking services. All this led to intensive
cooperation between mobile operators and banks. The lower costs of mobile banking,
as well as more accessible services in time and place of banking transactions, have
contributed to the number of users of mobile banking services constantly increasing in
the world, but also in Serbia.
Keywords: mobile banking, banking services, electronic payments, Apple Pay
1
vedran.tomic.83@gmail.com
2
danijela.st@gmail.com
Vedran Tomić, Danijela Stojanov
2
INTRODUCTION
Growth of the Internet and mobile technologies has transformed many
industries and economies. The power of the market and competition have been
utterly changed in many aspects. ITunes has changed the music industry in its core,
Amazon has left most of large booksellers unemployed, Expedia has become one
of the largest tourist companies in the world, etc. The Internet and mobile
technologies are a challenge to most industries. What started in 2000 with a .com
boom is posing a death threat to most business models nowadays.
Massive acceptance of mobile phones, development of smart phones and a
cheaper, widely-spread Internet have changed many branches of industry, including
the banking industry.
In spite of the initial skepticism, online banking has won its place in the
traditional bank transactions sector. Transactions are easily done from personal
computers from home or office. Real-time transaction monitoring enables users to
track their money flow. Therefore, driving from one part of a town to another
becomes obsolete, as well as waiting in bank queues. Transactions are fast and
easily done, around the clock, from anywhere in the world. These activities is
growingly important to people who often travel around and want to get information
on their bank account or make a transaction as soon as possible. Rapid development
of mobile technologies enables us to do these bank operations from mobile phones.
These activities could be all referred to as “mobile banking”.
Clients’ growing needs for more convenient and easier managing of their bank
accounts and transactions had also to be met by mobile phone producers. Mobile
banking has progressed from simple bank account checking to today’s mobile on-
the-spot payments in stores. It must be mentioned that a mobile devices producer,
Apple, made a revolutionary step forward in smart phones production, which other
producers had to follow in order to make their share on the market. Apple enables
us to insert electric cards into a device and thereby make contactless payments in
stores, by bringing the mobile device close to the POS terminal . Such a payment
method is known as Apple pay. Samsung, as Apple’s biggest competitor introduced
a similar feature of its mobile devices, called Samsung pay.
Constant adjustment to consumers’ needs and competing in reaching new
clients have forced not only the banking sector but also other branches of industry
closely related to it to make some radical or less radical change in business. Mobile
banking has been developing day by day and some more innovations are expected
to emerge in this segment of banking.
Trends and innovations in mobile banking
3
Concept of mobile banking
Development of modern technologies was one of the biggest allies in
development of the banking industry. In order to redirect and redesign the way of
doing business, the banking sector used technological innovations, which enabled
it to reach less available and more demanding clients. If we observe the evolution
of the banking industry, it is obvious that this sector has made a great effort to create
new communication channels through which it is possible to reach every client.
From phone banking, through internet banking to mobile banking (m-banking),
there has been one primary goal to simplify the way of doing business, going out
of a rather conservative model of banking, and to offer new distribution channels
for banking services. M-banking enables users to have all financial resources “in
their hands”, via mobile devices, mobile phones and personal digital assistants.
It is possible to use mobile banking via:
1. Voice mail (Interactive Voice Response) this distribution channel enables
the interaction between the client and the bank; when the client calls a number they
follow the menu with different options for selecting messages and reading
information.
2. Messages (Short Messaging Service) this distribution channel offers clients
to send text messages with a predefined content, based on which the bank can
respond by sending back also predefined text message with necessary information.
3. Wireless access (Wireless Access Protocol) this distribution channel is
similar to online banking since it uses the same concept of WAP technology. Using
the WAP search engine on mobile devices clients can look for bank presentations
and find necessary information on banking products and services.
4. Client-oriented mobile applications (Standalone Mobile Application Clients)
through this distribution channel clients use mobile applications to gain access to
advanced banking services, and make transactions that are reliable and safe in
modern terms [12].
The evolution of 3G phones, smartphones, and new 4G technologies have
widen the spectra of some new and improved models of m-banking.
It is important to monitor this phenomenon of changing and improving the
model of m-banking since, according to information system experts, it is one of the
most important development of mobile commerce (m-commerce), and as such, a
key for banking activities in the future [8].
The most adequate definition of mobile banking has been given by [9]: “Mobile
banking is an innovative method to access to banking services through a channel,
whereby the users interacts with the bank via mobile devices (e.g. a mobile phone
or a personal digital assistant). According to Deutsche Bank Research, smartphones
Vedran Tomić, Danijela Stojanov
4
and tablets will soon become new hardware devices in everyday life, which will
drive a bigger and faster supply of mobile solutions [3] [4].
A domestic market analysis also shows an increased use of mobile devices in
the Republic of Serbia. Between 2013 and 2014 there was significant growth in use
of mobile devices in households of almost 4% (86.9 90.6%), whereas in the period
2014 and 2015 this growth decreased by 0.3% (to 90.3%), and by 0.1% in 2016 (to
90.2%). These indicators do not show some extreme values until compared to the
situation 10 years ago when the use of mobile devices in households was 71.2% (
Use of information and communication technologies in the Republic of Serbia,
RZS, 2007, 2014, 2016). This growth of almost 20% in use of mobile devices in
households in the Republic of Serbia confirms the global trend. A survey conducted
by the Statistical Office of the Republic of Serbia (RZS) has shown that 76.5% of
the respondents chose “a mobile phone” as the answer to the question on how they
access to the Internet.
M-banking is one of the application that came out from mobile commerce (M-
commerce). It is a channel through which banks interact with clients by using
mobile devices in the most simplified form. Banks use m-banking, i.e. SMS
services to send clients updated information. Many authors implies that
communication due to constant development of mobile communication technology
can be defined as every direct or indirect monetary transaction made with a wireless
telecommunication network [10] [16] [13].
Tiwari and Buse put mobile banking in the following categories [14]:
1. Mobile accountancy (checking the balance on the bank account, blocking
lost credit cards, making money transfers or signing insurance policies);
2. Mobile brokerage (purchasing or selling financial instruments), and
3. Mobile source of financial information (credit card balance, ATM
locations, foreign currency values, prices of goods, etc.).
Based on the mentioned above, one can conclude that mobile financial services
offer wider practical options than online banking. For instance, one can use the
mobile banking application and create a token to make a payment, whereas in online
banking one should have and use an additional device to do so, or receive a text
message with a code, which implies the use of two devices instead of one.
Considering that all these services are focused on mobile devices, primarily on
smartphones and tablets, the number of internet-oriented users who gain access to
the services increases, thereby increasing the quality of life and making the use
easier [5]. Therefore, instead of wasting time in banks, people have time for some
other activities; even further, applications are becoming simpler, which helps
people make their payments easier and faster.
Trends and innovations in mobile banking
5
Innovations are characterized by their global prevalence and some of the
examples for this can be Lloyds TSB bank that offered the service of contactless
payments during the Olympic games in 2012, ING Direct that offers mobile
payments by simple touching two mobile phones, and American Express with its
rewards program for mobile users who “check in” (state their location) in stores
that are part of this program, granting those users a discount on goods they are
purchasing.
From innovation to realization Apple Pay case study
Mobile payments (M-payments) encompass all electronic payments made with
mobile phones. They can be defined as electronic payments, since they use
electronic technology, subgroup - wireless payments made via mobile phones and
small portable computers. Like mobile commerce, mobile payments are retail
payments, i.e. they include payments made between banks, companies and
individuals on one hand, and between individuals on the other hand. Mobile phones
can be paying devices when used with some other devices, as in case of paying with
mobile phones on POS terminals, or they can be used with other electronic
technologies in more complex electronic payments, or payments can be made with
mobile phones only [1].
The progress in wireless technology has been initialized by a growing number
of mobile device users, providing a positive incentive for the development of
mobile commerce. Mobile commerce has become a modern trend of approaching
traders to their customers, and in order to increase their share on the market some
traders allow customers to pay with smart phones . As already mentioned, mobile
technologies has become more and more sophisticated, and new forms of payment
has become a hot topic. Near Field Communication (NFC) mobile payment is a
phenomenon that enables users to convert their smart phones in digital wallets.
Before, paying in stores came down to using cash or cards, whereas modern
payment methods enable customers to pay using their mobile phones with the help
of NFC technology. Traditionally, until recently, mobile telecommunication
industry and financial industry have been completely separated, each with a
different, clearly defined sector and market. Nowadays, however, there is a
growingly intensive collaboration between mobile operators and banks, in order to
offer new products and new kinds of payment services. Recent development of NFC
technology enabled the emergence of services for mobile phone payments [11].
A revolutionary mobile phone company, Apple, after a series of successful
mobile devices, launched a new service named Apple Pay in mid-October 2014. It
is a payment system exclusively created for Apple mobile devices such as iPhone
Vedran Tomić, Danijela Stojanov
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6 and iPhone 6 plus, and at first it was launched only in the USA market. This
payment system uses NFC technology combined with the application for devices
with iOS operating system. The application named Wallet can be used on a mobile
device but also on a device that is worn around the wrist as a multimedia watch
Apple Watch. After a positive experience in the USA, Apple continued to expand
into new markets, enabling the use of this service in other countries. The service
was introduced in Great Britain in July 2015, and a year later, in July 2016, in
Switzerland, France and Hong Kong. Currently, it can be used in Australia, Canada,
China, Japan, New Zealand, Russia and Singapore. In its presentation of this
service, Apple states that the service will be offered to more than a million stores
across the USA. This service will be also used for making payments in the
applications, specially designed for that
purpose.
Apple Pay is one of the examples of a
synergistic effect of linking banks with
mobile device producers, with
telecommunication companies as
intermediaries. Apple estimated that its
contribution to an increased number of
online payments, or mobile payments,
amounted to 0.15% of each transaction, so
it is the cut Apple asks from banks from
every purchase. Banks are willing to give
up a part of their share, which is shown
during launching this service in
Switzerland, where Apple Pay was
supported on approximately 70% of POS
terminals.
The Apple Pay operating system works in the way that sends so-called Device
Account Number, to the store during the transaction, either via NFC technology in
the retail store, or the website as in online purchase. The device account number is
a number randomly generated in the device; it has 16 digits and it is a number of
the credit card, and can be recognized as a Token . This information is stored in the
operating system of the mobile device, on a chip named “Secure Element“, but it is
isolated from the rest of data, not to be integrated in the data set created during the
back-up.
Trends and innovations in mobile banking
7
Graph 1. Process flow diagram in case of paying with Apple Pay
Source: http://mobilepaymentux.com/meet-apple-pay/
Different devices are given different device account numbers. When entering a
new credit card number in the Wallet application, apart from the information on the
credit card in question, the application also stores the information on the device and
the last digits of user’s area code. These pieces of information, together with
supposed current location of the user are sent to the bank that issued the credit card,
in order to minimize potential abuse. The data on the credit card can be deleted by
the user at any time. In case of theft or a loss of the device, the data can be deleted
remotely, by choosing the option Find my iPhone u iCloud in the settings.
iCloud is a service that Apple offers to its users, created as a centralized space
for storing data. The data are stored by using a username, which is Apple ID. One
username can be applied on maximum ten devices. Thereby, people can access to
data by using different devices at the same time, either via iPhone, iPad, Apple
Watch, or some other devices with the same service. Newer generations of Apple
devices not only request a password to log in on iCloud, but also a fingerprint
Touch ID. Touch ID is created at the initial settings of a new device and it can be
used later to install applications or to facilitate payments in retail stores or on the
Internet.
The device account number, as mentioned before, enables the bank that issued
the credit card to determine the identity of the card user. The store sends the bank
information on the purchase and receives a positive feedback. The transaction is
then completed. Afterwards, the user/buyer receives the information directly on
their mobile device so they can once again confirm the transaction with the
fingerprint or by entering a code. The confirmation is made by cryptogram that at
that time stores on the user’s device all the data on the purchase, such as data on
validation of transactions (Card Validation Code CVV), the amount of money
transferred, information on the merchant and authentication of the Apple Pay user.
The organization of the cryptogram is not public, so the procedure cannot be
verified. The cryptogram is sent by the merchant to the banking network, which
processes the request and makes payment possible. During money transfer, it is not
possible for anyone to access to the information about the buyer except to their
address, in case the purchased goods need to be delivered directly to the buyer.
Vedran Tomić, Danijela Stojanov
8
The device account number is usable only with a valid cryptogram and it can
be used to make transactions solely on one Apple device. According to this
company, the Apple Pay service store no data on transactions, neither on the device
nor on the Apple servers, making the credit card number visible only to its owner.
Use of mobile banking worldwide
Due to an increased use of mobile banking, banks have transferred certain
aspects of their business from branches that were a traditional form of the bank-
client interaction. One of the main arguments for mobile banking, which banks
predominantly use in their policies to attract new clients, are lower costs, i.e.
cheaper and more affordable services. Services in this domain of banking business
are cheaper due to lower costs of human resources, and they can be used at any
place, 24/7/365. The above-mentioned advantages have led to a quite pronounced
increasing trend of the number of users, as shown in Graph 2 (the ordinate shows
the number of mobile payment users in millions).
Graph 2. Trend of the number of mobile banking users worldwide, 2009-2016.
Source: https://www.statista.com/statistics/279957/number-of-mobile-
payment-users-by-region/
Trends and innovations in mobile banking
9
The graph data imply that the Middle East has the smallest expansion of these
services, while the Asia/Pacific region records a very high growth in the number of
users, which is in line with the economic development of the region, demographic
trend and geographical configuration (a large number of islands).
The next aspect of mobile banking is cost saving that this channel can generate.
According to Boyes [2], costs per transaction are highest when the transaction is
made in the bank, and lowest when made via internet banking. The costs are lower
not only for the clients but also for the bank. KPMG (2015) in its cost analysis
shows that transactions cost 43 times more when made in the bank than when made
through distribution channels of mobile banking, and the results of the analysis are
given in Graph 3.
Graph 3. Analysis of costs in case of using mobile banking channels
Source: Javelin Strategy and Research, 2013; KPMG analysis
KPMG [7] in the same publication states that the level of users’ adaptation to
using mobile banking is very impressive. It estimates that the number of users of
mobile banking will increase to 1.8 billion by 2019, which is more than double,
compared to 0.8 billion users in 2014. Regardless of this trend and banks’ efforts to
reduce costs, clients are somehow reluctant to accept mobile banking. One of the
reason for this can be a dominant age structure of users of banking services. Based
on the Forrester research, a classification of the average age of mobile banking users
worldwide has been made.
4,3
1,3 1,3
0,2 0,1
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
In person at a
physical
branch
By phoning a
call centar
ATM Online banking Mobile
banking
Vedran Tomić, Danijela Stojanov
10
The previous part of this paper tackles an issue of (not) accepting mobile
banking, the cause of which assumingly lies in the demographic structure or age
structure of users. The average age of mobile banking users in America is 32,
whereas in Europe it is slightly higher 39 years, which is expected, considering
demographic trends. Regarding the average age of users in Asian countries and
Australia, one can see it is lowest in India 30 years, which is again in line with
demographic parameters. This study confirms the opinions of various authors who
agreed that mobile banking is mostly used by people aged 26 to 60. Those people
are also the main target group, since they are always in motion for work, and
therefore this method of the bank-client interaction is the most suitable for them.
Graph 4. Age classification of mobile banking users worldwide in 2015
Source: KPMG [7]
Americas
Europe
APAC
37
37
35
30
010 20 30 40
Japan
China
Australia
India
Trends and innovations in mobile banking
11
Adjusting their offer to this group of clients, banks have provided different
products and services of mobile banking and thereby solved issues of time-critical
transactions that required human resources. By hiring online operators who are not
at the bank but can work from home, banks improve the availability of assistance
to their clients. New forms of such assistance through social networks facilitate
solving acute problems to all subjects. These specific service channels lead to
increasing clients’ loyalty to banks. Speed and efficiency in performing daily
routines, paying bills and making other online transactions increase the satisfaction
of clients. On the other hand, banks can have better insight into clients’ behavior.
Banking services can be even more personalized in a way that every client can
choose a certain set of services they will use.
Sandader [12] points out that the most developed mobile banking can be seen
in the countries of North America, Europe and Australia, and JPMorgan Chase
Bank from the USA stands out as the market leader. This bank has developed the
most advanced smart phone applications for mobile banking, relying on resources
such as web presentations and two-way text messaging. The expansion of mobile
banking can also be seen in the fact that in France, Belgium, Denmark, Poland and
Russia, mobile banking applications can be used on any mobile device, thus
increasing the number of bank clients and incoming points in the banking system.
One of the leaders in this field is Denmark, where 93% of adult population use some
of mobile devices, 71% of whom have active mobile banking applications. In the
whole Scandinavian region mobile banking is the dominant channel of
communication with banks.
A special dimension of use of mobile banking can be seen when it comes to
data on operating systems in which such operations are made. Table 1 shows the
structure of mobile banking users by operating system on their mobile devices.
Table 1. Structure of mobile banking users by operating system on their mobile
devices, worldwide, in the second half of 2015 and the first half of 2016
Period
Android
iOS
Windows
Other
2015Q3
84.3%
13.4%
1.8%
0.5%
2015Q4
79.6%
18.6%
1.2%
0.5%
2016Q1
83.4%
15.4%
0.8%
0.4%
2016Q2
87.6%
11.7%
0.4%
0.3%
Source: IDC Analyze the Future, 2016.
Vedran Tomić, Danijela Stojanov
12
Based on these data one can see that the share of Android mobile devices
increased in the given period, whereas the share of all other operating systems (iOS,
Windows and others) decreased.
After analyzing the use and distribution of mobile banking worldwide, we will
give an overview of the situation in this field in Serbia.
Use of mobile banking in Serbia
A large number of international banks have their business in Serbia and they
expected that innovations in modern mobile banking technologies are also applied
in our country. As mentioned before, 76.5% of Serbian households use mobile
devices to access to the Internet, and those devices are smart phones that supports
mobile banking applications. Accordingly, it is not surprising that in 2014 the first
bank for online and mobile banking was founded, with a small number of branches.
Telenor, as one of the telecommunication companies purchased a license from KBC
Bank in 2013 and founded a “daughter company” named Telenor Bank. Telenor
Group is one of the largest mobile operators in the world. It has 200 million clients
in 13 countries: in Scandinavia (Norway, Sweden, and Denmark), Central and
Eastern Europe (Hungary, Serbia, Montenegro, and Bulgaria), and in Asia
(Thailand, Malesia, Bangladesh, Pakistan, Myanmar, and India). Telenor has been
present on Serbian market since 2006, when became the largest individual investor
in Serbia with the initial investment of 1.53 billion euros. Having 3.1 million clients
today, Telenor Serbia helps its clients use all the advantages of modern
communication (www.telenorbanka.rs).
On the example of Telenor Banka one can also see a similar synergy of two
different sectors, as it was case with mobile device producers and financial service
providers (part of the Apple Pay service), and in this case a telecommunication
company also offers financial services to its clients. The vison and mission that
Telenor Banka promotes on its portal implies that it aims to become the leading
provider of mobile and online financial services in Serbia, as it is shown in
Illustration 1.
Trends and innovations in mobile banking
13
Illustration 1. Promotional material of Telenor Banka
Source: www.telenorbanka.rs
However, one should not neglect the other banks that offers mobile banking to
their clients. It must be pointed out that Banca Intesa is the market leader in Serbia
in this field. Banca Intesa was the first bank that introduced mobile banking to
Serbian market. The “Intesa Mobi” application has been improved for years, and
its latest version enables clients to use a number of services, shown in Illustration
2.
Illustration 2. Promotional material of Banca Intesa
Source: www.bancaintesa.rs
Unique user platform on your mobile phone or computer gives you the
interactive management of your financial deals, as well as complete
control over assets and transactions.
Our goals are simple.
Make your life easier and let Telenor Bank be your first choice
when it comes to mobile and online banking.
Telenor Bank motivates and encourages the professional
development of its employees.
Telenor Bank is your trusted partner.
Insight into the balance and turnover of the account you have with
the Bank, as well as the accounts for which you are authorized
Insight into the status and transactions of payment cards that you
have in the Bank, as well as on the cards you have approved
Insight into the balance and turnover by credit
Transfer funds between your accounts, as well as accounts for
which they are authorized
Payment of credit card obligations
Exchange jobs (purchase and sale of foreign currency) within the
account with the same JMBG-
Special euro exchange rate - EUR NET, which is updated several
times during the day
Cashless payment through the account in a free form, without
commission
Look for branches and ATMs of the Bank
Mobi application through demo-application
Vedran Tomić, Danijela Stojanov
14
After the initial success of Banca Intesa, almost all the banks followed the
leader and developed application that are supported on the leading operating
systems of mobile devices. Erste Bank developed an extra option called “Take a
Photo and Pay”, enabling its clients to pay bills without copying information from
a payment slip.
According to the National Bank of Serbia, in period 2013-2015, the number of
mobile banking transactions increased by 45%. It shows how much this sector has
gained importance in our country. When expressed in numbers, the number of
transactions increased from 588,836 to 2,285,286, and this trend can be clearly seen
in Graph 5.
Graph 5. Number of financial transactions in Serbia made with mobile devices
in the period 2013-2015
Source: NBS (http://www.nbs.rs/internet/latinica/35/statistika/index.html)
Another dimension of this analysis refers to the total value of transactions. The
National Bank of Serbia publishes data expressed in Serbian dinars, so when
converted into euros, the total value of transactions in Serbia increased from 15,989
euros in 2013 to 108,769 euros in 2015. In other words, the value of the transactions
increased six fold in only three years.
Graph 6. Total value of financial transactions in Serbia made with mobile
devices in the period 2013-2015, in euros
Source: NBS (http://www.nbs.rs/internet/latinica/35/statistika/index.html)
Trends and innovations in mobile banking
15
The growing trend in this field in Serbia could be even more pronounced if
there were not several limiting circumstances. The most important of them are
potential security deficiencies of this distribution channel that are spreading more
and more among users in our country, too.
Security deficiencies of mobile banking
Development of mobile devices had to be followed by banks to provide more
interesting and more customized services for their users and keep them as clients.
With customizing the services and expanding the banking network, threats of abuse
have risen. Many factors that made elderly people skeptical about using mobile
banking, such as poor application security due to a lack of PIN code have been
mostly eliminated with introducing the authentication when opening the
application, or linking touch ID with the application and its authentication. These
measures reduced concerns about losing the device. Nevertheless, phishing emails
and POS Trojans are still a risk factor for users. Unlike POS Trojans, phishing email
attacks are related to the user and banks cannot affect them.
Unwanted emails are generally marked as spam. Spam can be classic spam,
malware spam-programs and phishing emails. Spam is most often sent through
infected servers, infected client operating systems or through some of authorized
email accounts that have a spam sending program. Such connected systems are
called a botnet. A botnet has become a marketable service of cybercriminal. Classic
spam is often used to advertise products, financial securities or services. Phishing
emails are emails that contains an invoice for buying a certain product, but when
users click on the link from the email, instead of going to the portal of the online
store or the bank they open a fictive (false) site where they are requested to enter
their personal information that are taken over by hackers. Apart from invoices,
phishing emails can contain notices on a change in the bank account balance,
winning money on a lottery, etc.
POS malware are Trojans that copy the credit card number and PIN codes by
using a keylogger . POS Trojans record information on the user and send it to
hackers, similar to spam. They are not only a threat to POS terminals, but also to
mobile operating systems. A certain number of banks and financial institutions
started to introduce “selfie” photos of their clients with their personal information
as a faster method of authentication. It was promptly used by cyber criminals for
their own needs by creating a POS Trojan for Android mobile devices, known as
Acecard. Acecard usually comes disguised as a video codec, video plug-in or adult
applications and it can be downloaded exclusively on unofficial sites for
downloading Android applications.
Vedran Tomić, Danijela Stojanov
16
CONCLUSION
Progress in mobile devices development, and a synergy of three components
mobile devices, telecommunication networks and financial services have led to a
growing number of mobile banking users. This growing trend enables banks to
distribute their services cheaper and timelier to clients. Potential security
deficiencies in mobile banking have been minimized and come down to users’ error.
Almost all mobile banking applications use a PIN code when initialize; it is created
by the user and it is necessary for making transactions via mobile devices, which
improves security of mobile banking. Cryptograms applied by Apple devices that
request the fingerprint (Touch ID) personalize the use of the device, that is, only
one users can access the device. All above mentioned factors, combined with a
faster lifestyle and accessibility to information at any time by using mobile devices,
encourage all the subjects in mobile banking /service providers to improve
constantly.
Serbia is very good at following global trend in informatics and has a well-
developed infrastructure for it, so the banks that run business here will soon make
effort to offer some new services, such Apple pay. Of course, one should also take
into account that Apple has to approve the expansion into this geographic area, and
our legislation to keep pace with technological innovations.
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... This recent development of NFC technology enabled the emergence of services for mobile phone payments (Pham & Ho, 2015). Consequently, there is a growingly intensive collaboration between MNOs and banks, to offer new products and new kinds of payment services (Tomìc & Stojanovic, 2018). ...
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How to cite this paper: Moro-Visconti, R., Quirici, M. C., & Borroni, M. (2020). Matching financial closeness with social distancing: Networking digital platforms within a corporate governance ecosystem. The Covid-19-Coronavirus pandemic has rapidly spread around the world, demanding for social distancing measures as a strategy to soften contagion. Whereas social closeness proves dangerous, financial proximity is increasingly needed and can be guaranteed by FinTechs or applications, like digital platforms. Networking platforms may be represented by bridging nodes like Mobile banking (M-banking) hotspots. M-banking and FinTech applications are fully consistent with distancing prescriptions and ease financial inclusion, allowing for 24/7 operativity. This study proposes an innovative interpretation of the networking properties of digital platforms and M-banking that represent a new-virtual-stakeholder, showing how they improve corporate governance interactions. Due to their scalability, platforms foster cooperative value co-creating patterns, with deep albeit still under-investigated governance implications. Network governance is a novel approach to describe the stakeholders" ecosystem, and its value-adding physical and virtual interactions. The paper shows how to match virtual financial proximity with apparently contradicting social distancing. This study represents an advance in the literature, as it investigates about its smart (digital) extensions that can represent a shield against pandemic adversities, reducing transaction costs, and information asymmetries.
... All this led to intensive cooperation between mobile operators and banks. The lower costs of mobile banking, as well as more accessible services in time and place of banking transactions, have contributed to the number of users of mobile banking services constantly increasing in the world (Tomic and Stojanovic, 2018). Many MFIs are experimenting with innovative delivery channels to reduce costs, facilitate greater outreach to hard-to-reach areas, and increase customer value for money. ...
... All this led to intensive cooperation between mobile operators and banks. The lower costs of mobile banking, as well as more accessible services in time and place of banking transactions, have contributed to the number of users of mobile banking services constantly increasing in the world (Tomic and Stojanovic, 2018). Many MFIs are experimenting with innovative delivery channels to reduce costs, facilitate greater outreach to hard-to-reach areas, and increase customer value for money. ...
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Mobilni telefon kao kanal elektronskog poslovanja, Ekonomski anali br. 151-2, oktobar
  • P Bjelić
Bjelić, P. (2002): Mobilni telefon kao kanal elektronskog poslovanja, Ekonomski anali br. 151-2, oktobar 2001. -mart 2002., str. 95.
Convergence markets: Smartphones and triple play continue to erode sector boundaries
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DBResearch. (2011a). Convergence markets: Smartphones and triple play continue to erode sector boundaries. (Vol. Economics). Frankfurt am Main, Germany: Deutsche Bank.
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